J141
New Member

Retirement tax questions

This error continues in Turbotax 2020 edition. It is just a mess. The Easy Step instructs you to enter 1099! and 1098T but nowhere does the interview process ask you to insert info on college costs like room and board. In my case the tax bill was several thousand dollars too high, both because it was treating the difference between the 529 withdrawal and tuition paid as taxable income, and also because it added the 10% penalty for non-educational uses of 529 withdrawals on form 5329. 

 

It appears one can add educational expenses by clicking on the student's name and going to their education expenses form, but this is almost impossible to figure out.  

 

Even after adding educational expenses apart from tuition by hand, Turbotax is subtracting 10000 and I am still, according toTurbotax, having to treat some of these withdrawals as taxable income. That surely is wrong. 

 

Can somebody from Turbotax look into this? My confidence in this program is shaken.